Pre-Induction Assignment 1

India’s Internal trade infrastructure

Name: ANSHUL AGRAWAL

Enrollment No. 211510025893
  4TH largest network - 67,956 km  Growing industrialisation, rising  Inadequate investment lack of  Dedicated freight corridors and
 13,169 passenger & 8,479 freight trains incomes and increase in urbanisation resources for operation, high speed passenger corridors to
 23 million travellers and 3 Million has raised freight traffic. maintenance, tech upgrade reduce turn around time.
Tonnes of freight daily  Railway transport export of $ 380  Aged and overloaded infrastructure  Modernise core assets coaches,
million in FY 19 with CAGR of 52.52% tracks, bridges, signals
 High Operating Ratio [0.96] leaving
during 2010-19.
less time for safety inspections.  Use ICT status of train timings,
 Budget 2021 $ 14.8 billion allocated frequency, delays, monitoring etc.
 Cross - subsidy burden leading to
to railways
higher freight charges → trade  All new coaches of the safer LHB
 Freight traffic is expected to grow shifting to road design
from 1.2 billion tonnes in FY 20 to
US $25 billion  Excessively centralised  Disinvestment in railway PSUs
2.0 billion Tonnes by FY 24.
organizational structure delay in  Rationalise passenger fares and
decision making make freight fares competitive.
 Utility-death spiral: low air-fare
forcing railways to not increase
1. Financial - dynamic pricing, Merger passengers fares
• RailTel Wi-Fi across Indian Railway of Railways and Finance Budget,
Network 100% FDI in Railway infrastructure  HR inadequacy lack of training,
• DFCCIL construction, maintenance, 2. Organizational: Setting up Rail large number of vacancies, long
operation of dedicated Freight Development Authority as working hours
corridors independent regulator.
3. Technological: Train protection
• ConCor Navratana PSU providing
Warning System (TPWS) & Train
logistics solutions to Indian Golden Quadrilateral and its diagonals
Collision Avoidance System (TCAS)
Railways. make only 15% of total route length but
Elimination of UMLCs
transports 55% of freight.
  Container traffic in FY 20 was 9.98  Port congestion High Turnaround  Capacity augmentation by making
 12 major Ports – 6 Ports on East
TEU witnessing 1.12% y-o-y growth. time (2.1 days) new ports functional
and 6 Ports on West Coast
Increased trade will further boost
 204 minor ports  Inadequate port depth average in  Ensure Multi-modal connectivity
demand.
 Ports handle 90% by volume and India 12 metre against 18 metres with ports for last mile connectivity.
70% by value of EXIM trade  Infrastructure Development will required by Mother vessels. 5th  Facilitate access to capital: Priority
 Major Port have a capacity 1535 boost demand for Iron & steel gen ships are not able to enter Sector Lending, VGF (limited period),
MTPA freight. India infra bonds, PPP reforms
 Only 44 Minor ports are functional.
 Around 300 dry ports in India –  Dredging DCI is dominant player  Enhanced use of ICT mechanized
only 170 are functional with few private vendors cargo handling infra, automated
 inadequate navigational aids, clearances
1. 100% tax concession for 10 years for facilities and IT systems  LADIS Least Available Depth
enterprises that develop, maintain and  Low capacity Utilization < 50% in Information System
• Dry port/inland port is an inland operate Inland ports. FY20
terminal directly connected to a 2. 100% FDI under automatic route for
 High port charges with respect to
seaport. port & harbour construction &
International Ports.
• Located where network of maintenance
different transportation modes 3. Sagarmala Project
converge
SAGARMALA Project – 4 pillars of Port led Development
• Facilities include: container yards,
warehouses, railway sidings, cargo-
handling etc. Kolkata Port Port Port- Led Port Coastal Community
• Helps relieve seaport of only major Modernisation Industrialisation Connectivity development
congestion. riverine port • New ports • Industrial clusters • Road/ Rail • Skill
of India • Efficiency • Coastal economic connectivity Development
improvement Zones • Logistics parks • Coastal tourism
 Inland waterway network of 14,500 km in  5200 km of river & 4000 km of
 Ageing fleet avg age 19.9 years  Open dredging Market to
form of rivers, canals, lakes & ponds canals are navigable.
international players & develop
 111 National Waterways  Shallow depth and seasonal
 Maritime India Vision-2030 deeper, year-round navigable
 IWAI is the statutory body in charge of dependence on monsoon.
envisages $40 billion investment in stretches.
waterways in India. port project, shipping & inland  Inadequate air draft low vertical
 55 million tonnes of cargo moved  Make financing inland vessels part
waterways. clearance block passage of large
through Inland waterways – highly of Priority Sector Lending
unutilised.  Employment opportunity for 2 vessels
 Regular navigation service to
 1411 cargo vessels in merchant shipping. million people.  Shortage of IWT vessels & MRO determine the depth.
 28 Shipyards in the country, 6 under  Increased modal share of cargo facilities
Central, 2 under State Governments and  Expedite implementation of
volume from 0.5% to 2% witnessing  Dependency on foreign ships: only
20 under PSUs SAGARMALA
19% y-o-y growth. 10% of freight by Indian Ships
 Indian Maritime University, Chennai  Integrate with Big ticket projects to
development of trained human resource  Lower operating cost 30% lower  Lack of terminals inhibits door to harness full potential
for the maritime sector. compared to Railways & 60% lower door connectivity to end users. Skill India → Human resource for IWT
compared to Trucks. Blue Revolution → socio- economic
 Environmental lobby resistance empowerment of fishing community

Indo-Bangladesh Cargo
1. 106 inland waterways declared as Movement along NW 1
National Waterways in 2016.
Cargo (in Million

2. Forum of Cargo-Owners & Logistics 4

Jal Marg Vikas Project on NW 1 between Haldia & Varanasi
tonnes)

Operators (FOCAL) to connect cargo 3.5 • Develop a fairway with 3 metre depth capable of carrying
owners & shippers online. 3 1500 tonnes vessel.
3. Central Road & Infrastructure Fund can • Construction of Multi-modal terminals, RoRo and navigation
2.5
be used for Inland Waterways aids.
development. 2
4. Jal Marg Vikas Project 1.5
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
 Lopsided Modal Mix in India
Roadways Railways Inland Waterways
Share in Freight Transport 59% 35% 0.15%
Operating Cost / Tonne-km Rs. 2.58 Rs. 1.41 Rs. 1.06
CO2 emission/ tonne-km 64gm 28gm 15gm
Roadways Railways Inland Waterway
• Provides last mile • Low energy consumption • Low accidental rate
connectivity and less polluting • Employment opportunity China 30% Least socio-
• Wide network connecting • Cost effective • Economic and US 37% environmental
remote regions • Better cargo security environment friendly cost
• Fast over short distance
• Only good for high volume • Not fit for perishable cargo
• Expensive, unsafe, more corridors & long distances • IW development has high
polluting • Not flexible social cost

• Only roadways provide last mile

connectivity and hence are integral
India slipped from 36th (2016) to 44th
to all freight transport.
position in World Bank’s Logistics
• Railways and Inland waterways are
Performance Index (LPI) in 2018.
ideal for transporting long distances
• An Integrated Transport Modal mix
will be economic, efficient and
environment friendly
Reference
1. https://www.ibef.org/
2. http://shipmin.gov.in/ Name: ANSHUL AGRAWAL
3. http://iwai.nic.in/ Enrollment No. 211510025893
4. Niti Aayog: GOODS ON THE MOVE
5. https://concorindia.co.in/
6. https://www.unescap.org/sites/default/files/6.4.India__0.pdf
7. https://www.cogoport.com/blogs/complete-guide-to-road-rail-
barge-transport-what-exporters-importers-need-to-know
8. Key issues & challenges for Inland water transportation Network in
India Praveen S Jegan J